The European Union slapped Google with two fines worth 890 million euros ($1 billion) in a move that risks raising tensions with the United States.

The EU fined the U.S. giant 460 million euros on Thursday for illegally favoring the company’s own services—for example, Google Flights or Google Hotels—over rivals in search results.

The second fine, worth 430 million euros, was imposed because Google did not allow app developers to show consumers’ offers free of charge outside of its Google Play Store, the European Commission said.

Google criticized the move, telling German media, “This isn’t fair competition; it’s product degradation driven by a small group of self-serving complainants, with European businesses and consumers taking the hit. Regulation should improve products, not make them worse.”

Beyond the size of the fines, the case carries broader geopolitical implications. It highlights the EU’s push for greater digital sovereignty and its willingness to challenge major U.S. technology companies despite the risk of worsening transatlantic tensions.

While Brussels argues the penalties are aimed at protecting competition rather than targeting American firms, Washington could view the measures as part of a wider pattern of regulatory pressure on U.S. companies.

The dispute reflects a growing global debate over who should set the rules of the digital economy, with technology regulation increasingly becoming a source of geopolitical competition.